Alaric - please help me understand your "filling the gap" reasoning. Are you saying the "gap" down needs to be filled - meaning we need / can see a move back up to the recent highs (112)? Or falling back down to the mid-February levels?
And what does Citron have to say? Awfully quiet...hummmm.... They are certainly looking the fool now...
It seems like yesterday that Wall Street was frothing at the mouth over 3D printing stocks. These high flyers were not valued based on their financials but rather as a beneficiary of being anointed as “the new new”. Citron Research was critical of the space and published pieces on 3 of these bubble-levitated 3D printing stocks. It is 18 months later and most of them languish 80% off their highs.
So Wall Street has gone searching for another “new new” in the technology sector and has found one in Ambarella (NASDAQ:AMBA), whose parabolic frenzy has now launched it into a realm that can’t possibly be supported by reality. Citron points out how how far this niche chip designer's stock has separated from reality.
This chip designer isn’t disrupting an industry or defining a new marketplace. Wall Street’s love affair with Ambarella unjustifiably started with the IPO of GoPro. Citron has seen this movie too many times, and when the shine comes off investors will be looking at a chip company that will trade at the same valuation multiple of its peers -- which in this case put the stock at $30.
I believe this is being unexplainably beaten down - my guess is MM's pushing it down before earnings, grabbing shares and then send it flying as we approach earnings....
As for the weakness in the Euro: wouldn't that result in stronger revenue from the US sales as the dollar buys MORE?
I would be very leery on earnings - will correct and drop below 100 soon afterward. Like it of not, Cintron report reveals many the flaws in AMBA's fundamental picture - least of which is the competitive landscape for its products...the "moat" is extremely narrow.
That's interesting...Have a nice day. I hope it all works out for you....
The analyst report paints a very pretty picture for Ambarella investors, but here is the problem: For Canaccord to be right about Ambarella hitting $120, absolutely everything it is predicting has to come true -- and then some.
HOW OFTEN DOES EVERYTHING GO RIGHT?
If and when Ambarella stumbles, investors will learn in a hurry just how expensive the valuation truly is.
So what you're saying is the stock price will drift DOWN below 100 by Friday, when the call options expire?
Despite rig count reductions, the big drillers are still going balls to the wall and producing more than is being consumed. Once those rigs come back on-line, prices will drop again ... tough to see where it is going to land. The Saudis have really squeezed the American drillers - they could afford to maintain their production levels anywhere above 40 a barrel...and their pockets are deep. But once prices begin to approach 60 a barrel, we'll see those rigs firing up as quickly as they shut down - then we'll see prices begin to drop again. Demand will be replaced with more hybrids and EV's....price will stay low for a while.
- deutsche bank raises target price to $125; rating buy
- jefferies raises price target to $116 from $100; rating buy
- oppenheimer raises price target to $115 from $100; rating outperform
- susquehanna raises price target to $128 from $120; rating positive
- jp morgan raises price target to $103 from $100; rating neutral
Sentiment: Strong Buy